Generally speaking, the global oil market can affect the Iraqi bitumen,

its market, and demands. Therefore, we have brought some key factors

regarding the Iraqi bitumen market fluctuations. As the situation in India

worsens due to the outbreak of the corona and growing concerns about

the resurgence of global oil demand, the price of this commodity has fallen

in today’s world markets. It’s needless to mention that India is the

third-largest importer of oil in the world. Moreover, Brent crude traded

down nearly 1.2 percent at about $65.33 a barrel in early trading recently. On

the other hand, West Texas Intermediate crude traded down $61.39 a barrel.

Wataniya Petroleum Company

Iraqi bitumen and the corona crisis

Today, Monday (April 26), India recorded the highest number of corona

disease cases for the fifth day in a row, and some European and

American countries are scheduled to send medical aid to this country. Besides, some estimates show a drop in demand for diesel and diesel fuel in April

and May in India. Japan, the world’s fourth-largest oil buyer,

is no exception; Corona-related regulations have been tightened in

Tokyo and Osaka since yesterday, covering about a quarter of the

country’s population. Members of the Organization of the Petroleum

Exporting Countries and major non-oil producers, known as OPEC Plus, met on April 1. Agreed to accumulate production May; the decision came after

the new US administration asked Saudi Arabia to reduce the

price of energy carriers for consumers.

Iraqi bitumen and the OPEC Plus

It’s also good to know that OPEC Plus, which has seen a sharp drop in

production since the start of the Corona epidemic, is set to increase

production by 350,000 barrels per day in May and June, up from over

400,000 barrels per day in July. Roughly speaking, with the increase in vaccinations in some countries of the world and the hope of increasing

demand in the coming months, the price of a barrel of Brent oil in early

March this year had reached nearly $70; But in more than a year since

the beginning of the Kuwait epidemic in the world, the oil market has

had tough days.

As mentioned above, Brent crude rose to about $23 a barrel in April last

year (2020) as global demand declined, industrial activity closed and

borders closed. The International Monetary Fund, in its latest

World Economic Outlook report, forecasts an average oil

price of $58.52 a barrel in 2021.

 

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